Kimberly-Clark ($KMB) delivered $1.70/share in 3Q2026 – about $0.05 above expectations
Sales were -1.2% lower ($4.1 billion) slightly below expectations of $4.13 billion consensus,
Gross margins dropped by 130 basis points as, despite productivity savings, inflation and supply chain related investments were challenging.
* Forecast margins in the 4Q are likely to resemble the recently reported numbers.
* Adjusted operating profits and EPS re projected to grow mid- single digits (adjusted for currency shifts) – in line with expectations.
After the recent run-up in Kimberly’s and in the shares of other consumer-packaged goods companies (during which I have reduced my longs) – KMB seems fairly priced to this observer.
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